“There are no real friends or enemies in the business world”. This saying may have been on the minds of bosses at China’s main online video providers, Youku.com Inc and Tudou Holdings Ltd, when the one-time rivals（对手）agreed to merge (合并) on March 12. The deal will create the country’s largest company in the online video industry, Youku Tudou Inc.
Three months ago, the two companies were involved in a copyright dispute. On December 12, Tudou charged Youku.com with illegally airing the entertainment series, Kangxi is coming. Tudou was the only company which had rights to the series. In response, Youku filed a lawsuit（诉讼） against Tudou, claiming the company was broadcasting more than 50 Youku-owned TV series.
According to analysts, the deal came out of the market battle between the two companies. Each spent so much money buying licensed content that they ended up in the red last year. “Funding pressures are the main reason for the deal,” said Shi Jialong, a Hong Kong-based analyst with CLSA Asia-Pacific Markets. “After the merger, there might be a fall in copyright purchase prices, which is good for the industry in the short term.”
The new company will face competition from Web portals(门户网站) providing similar services. Youku owned 21.8 percent of Chin’s online video market in the last quarter of last year and Tudou 13.7 percent, but Sohu.com followed close on the heels with 13.3 percent, according to domestic research company Analysys International.
Some analysts do not feel the deal will secure the market for Youku Tudou. Shi Yu, CEO of media company KU6, said the merger was unlikely to have a “one plus one more than two” effect. In his opinion, video-hosting sites need to find new ways of generation profit to succeed in the market.
The main reason for Youku.com Inc and Tudou Holdings Ltd to merge is that           .

A．the two companies were in great demand of money

B．they were charge with illegally airing the entertainment series

C．the two companies created the country’s largest company

D．they intended to cut down the prices of copyrights

The underlined words “in the red” in the third paragraph mean “         ”.

A．in a big fight

B．in a great trouble

C．at a loss

D．at a distance

What do the last two paragraphs imply?

A．Shi Yu doesn’t think it a good idea for the two companies to merge.

B．The merger is really a win-win deal for the companies involved.

C．The merger may not promise a bright future for Youku Tudou.

D．The new company will be more competitive after the merger.

Which of the following is TRUE according to the passage?

A．The merge will benefit the online video industry to some degree.

B．The two companies spent lots of money building video-hosting sites.

C．Youku Tudou Inc currently controls half of the online video market in China.

D．The new company has taken charged of all the entertainment series.